Which of the Following Strategies Replicates a Long Position in an FRA

question 53

Multiple Choice

Which of the following strategies replicates a long position in an FRA?

• A)long a long term Eurodollar time deposit and short a short-term Eurodollar time deposit
• B)long a Eurodollar futures and short a Eurodollar option
• C)long a Eurodollar option on a futures
• D)short a long-term Treasury bond futures and short a short-term Treasury bond futures
• E)long a receiver swaption

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Definitions:

Temperament

The inherent part of an individual's personality concerning their emotional nature and habitual behaviors.

Chess and Thomas

Researchers known for their contributions to developmental psychology, particularly in the study of temperament in children.

Temperament

Refers to the innate characteristics of an individual's personality, including tendencies toward emotional reactivity, intensity, and sociability.

Behavioral Style

The characteristic way in which an individual reacts and interacts with the environment, often consistent across different situations.